Michigan to Allow Health Insurers to Reinstate Canceled Plans

LANSING, Mich -- In an effort to aid Michiganders whose health insurance policies were canceled as a result of the Affordable Care Act (ACA), Michigan Department of Insurance and Financial Services Director (DIFS) Ann Flood announced today that, after careful review and analysis, Michigan is allowing health insurers to reinstate canceled policies.

“The announcement of the federal policy change this close to January 1 came as a surprise,” said Flood. “We considered the difficulties that this change will create for insurers, but the decision came down to the fact that consumers in Michigan deserve to have options, particularly given the difficulty they’ve had accessing the federal Marketplace.”

Gov. Rick Snyder concurred with Director Flood’s decision.

“A healthier Michigan is an important part of our state’s continued comeback, but unfortunately Michiganders have seen their health insurance plans canceled under the Affordable Care Act after they were promised they wouldn’t lose them,” Snyder said. “Now, this policy change opens the door for those canceled policies to be continued. In Michigan, we want to be sure that consumers have the best options available.”

The decision allows insurers the option to reinstate policies that were to be discontinued beginning on Jan. 1, 2014, due to non-compliance with provisions in ACA, and follows the announcement that the U.S. Department of Health and Human Services will not enforce certain ACA provisions in 2014 for plans that were in effect on Oct. 1, 2013.

If a consumer’s plan is reinstated their insurer is required to send a notice that informs them of the ACA reforms that are not included in their reinstated coverage, their right to enroll in a plan through the Marketplace with the potential for financial assistance, and all available coverage options.

Any request for rate increases must be submitted to DIFS for approval.

Consumers who have questions about their specific plan and whether it will be reinstated should contact their insurance company. Information about the ACA and what it means for Michigan residents is available at www.michigan.gov/difs.